Read the latest Yardi Matrix Self Storage Market Outlook.
On a monthly basis, 29 out of the 30 metros recorded contractions, while Tampa saw its advertised asking rent growth increase, according to the latest Yardi Matrix self storage market outlook.
Key Takeaways
- As of October, the advertised asking rent movement continued to be negative, with the average annualized same-store asking rent per square foot down 3.1 percent for the combined mix of unit sizes and types.
- Same-store advertised asking rates for the combined non-climate-controlled units were down 2.6 percent year-over-year, while rates for climate-controlled units fell by 3.7 percent.
- All but one of the 30 metros tracked by Yardi Matrix saw contractions month-over-month, while Tampa’s asking rent growth increased, as per square foot rates were down 100 basis points, to $16.35.
- The national under-construction pipeline equaled 3.3 percent of existing inventory, down 10 basis points from the previous month.
Improvement in YoY advertised rates decline
In October, the national average annualized same-store advertised asking rent per square foot was $16.35 for the combined mix of unit and sizes. This figure marks a 3.1 percent decrease compared to October 2023 and shows an improvement compared to the 3.8 percent drop in September and the -3.9 percent in August. Rates for combined non-climate-controlled units fell by 2.6 percent on a year-over-year basis as of October, while same-store advertised asking rates for climate-controlled units decreased by 3.7 percent.
In October, nearly all of the top 30 metro areas had negative advertised street rate movement year-over-year. The decrease in combined same-store advertised asking rates for non-climate-controlled units and climate-controlled units ranged between -0.4 percent in San Francisco and -7.4 percent in Atlanta, while Washington, D.C.’s rate for non-climate-controlled units was up 0.8 percent.
Construction activity stays strong
On a national level, new supply in the last three years accounted for 8.8 percent of stock at the beginning of the period. Meanwhile, deliveries equaled 2.9 percent of that amount during the previous 12 months.
Yardi Matrix keeps track of a total of 3,389 self storage properties in various stages of development across the U.S. The development pipeline included 823 under construction, 2,066 planned and 500 prospective properties. As of October, the under-construction pipeline accounted for 3.3 percent of existing stock, a 10-basis-point drop from the previous month.
A total of four out of the top 30 metros tracked by Yardi Matrix recorded an increase in under construction pipeline, despite heavy new supply delivered in recent years and it includes Las Vegas, Tampa, Phoenix and Charlotte. Another 15 metros showed contractions, while the remaining 11 stagnated.
The under-construction pipeline only contracted by 3.2 percent quarter-over-quarter. Hence, the Yardi Matrix fourth quarter storage supply forecast has been increased by 2.6 percent for 2024, 7.8 percent for 2025 and 6.0 percent for 2026. Long-term forecast for 2027 through 2029 remains unchanged, as predictions indicate a deceleration in development interest.
Read the full Yardi Matrix National Self Storage Market Outlook: November 2024.
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